Chapter 4 Questions (3)

what are the different ways to compute the equivalent units of production?

FIFO and weighted average

for which two categories of costs are equivalent unit figures most often computed in process costing?

materials and conversion

the weighted average method includes costs for

prior and current periods

true or false: the equivalent units of production computed under the weighted average method does not take into account the percentage completed of the beginning inventory

true

the _____ method combines units and costs from both prior and current periods, while the _____ method includes equivalent units and unit costs for work done in the current period

weighted average FIFO

the journal entry to record the transfer of completed units to the finished goods warehouse is debit _____ and credit _____

finished goods/work in process

equivalent units of production equal the number of units transferred to the next department plus equivalent units in ending work in process under which method?

weighted average method

costs per equivalent unit are used to value

both units in ending inventory and units transferred to the next department

the formula for the cost per equivalent unit using the weighted average method is

cost of beginning work in process inventory + cost added during the period / equivalent units of production

conversion costs are

direct labor plus manufacturing overhead